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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index dropped 2.19 points to 450.17 Wednesday. Extractor Valens Groworks Corp. (VGW) earned $5.8-million in its fiscal third quarter of 2019 (ended Aug. 31, 2019), a dramatic improvement from the company's $10.5-million loss in fiscal Q2. The loss was as significant as it was because of one-time expenses that accounted for over $9-million, but the swing was substantial nonetheless. Valens saw a strong increase in its Q3 revenue, reaching $16.5-million, up from $8.8-million in Q2.
Part of Valens' turnaround was spurred by improvements in operational efficiency. The company had an impressive gross margin of 77 per cent in Q3, compared with a gross margin of 58 per cent in the quarter before. This compares well with fellow prominent cannabis extraction company, Medipharm Labs Corp. (LABS: $4.12). Medipharm had a gross margin of just 36 per cent for the second quarter ended June 30, 2019, and 31 per cent in the period before that. Although Medipharm is well behind Valens in terms of gross margin, it too recorded a profit in its most recent results. Medipharm also nearly doubled Valens' revenue with $31.4-million in Q2, compared with Valens' Q3 revenue of $16.5-million.
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